Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

2 . The startup AndersonVenture had an A - round in which it sold 1 0 million shares of convertible preferred stock at $ 1

2. The startup AndersonVenture had an A-round in which it sold 10 million shares of convertible preferred stock at $1.00 per share. Prior to the Series A financing, Management owned 15 million shares of common stock and the Conversion Price of preferred stock to common stock was 1:1. AndersonVenture needs to raise an additional $5 million in a series B round and learns that new investors insist on a pre-money valuation of $15 million. Please create a fully diluted capitalization table after the Series B investment, under three scenarios:
a. There is no dilution protection for prior investors.
b. There is full ratchet protection.
c. There is weighted average dilution protection.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Markets And Institutions

Authors: Jeff Madura

9th Edition

1439038848, 978-1439038840

More Books

Students also viewed these Finance questions